The Mutual Fund Dealers Association of Canada has issued a bulletin regarding the identity verification requirements under anti-money laundering rules.

The MFDA bulletin indicates that the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has published a notice clarifying the measures that Canadian securities dealers must take when opening an account in the name of a person or entity that is engaged in the business of dealing in securities only outside Canada. This includes fund dealers.

The notice provides information on the requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations to ascertain identity and make third party determinations on these sorts of accounts. It also lists certain exceptions to third party determination requirements and provides information on the use of agents in ascertaining identity.